Short-term rental rules · Wilmington, North Carolina
Short-term rentals in Wilmington, explained properly.
Wilmington's original short-term rental rules — a registration lottery, a 2% cap and 400-foot spacing between rentals — were struck down in Schroeder v. City of Wilmington (N.C. Court of Appeals, April 5, 2022), which held that state law bars cities from requiring rental registration. The city rebuilt its rules as zoning standards. According to a secondary source, Ordinance #0509 (November 21, 2024) allows homestays in the host's principal residence in residential and historic districts, allows whole-house rentals in commercial districts and in residential districts subject to parking and operator standards, limits guests to two per bedroom, and requires a $75-per-unit annual owner permit plus a 2% city lodging tax. Guests pay about 15% in combined taxes.
Draft. These rules were compiled from the sources listed below — official where available, with fields that rely on secondary sources marked for review — and have not yet been checked line by line. Confirm with the city before making decisions.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Lottery, cap and spacing struck down in 2022 | On April 5, 2022 the N.C. Court of Appeals unanimously held that state law prohibited Wilmington's STR registration scheme, including its lottery and 400-foot spacing requirement, affirming a 2020 trial court decision[1] |
| Ordinance #0509 (November 21, 2024) | A secondary source describes Ordinance #0509, adopted November 21, 2024, as the city's post-Schroeder zoning framework: homestays allowed in R-15, R-10, R-7, R-5, R-3, HD, HD-R and HDMU districts in the host's principal residence (up to three guest rooms); whole-house lodging allowed in O&I, CB, RB, CBD and UMX districts (with a ground-floor street-facing restriction) and in residential and historic districts subject to parking and operator requirements[2]Confirming |
| $75 per unit annual owner permit | A secondary source reports an annual STR owner permit of $75 per dwelling unit, valid for one year, non-transferable and void on sale[2]Confirming |
| Two guests per bedroom | A secondary source reports a maximum of two guests per bedroom and one dwelling unit per listing[2]Confirming |
| Combined tax about 15% | A secondary source cites 7% sales tax, a 6% New Hanover County room occupancy tax and a 2% city lodging tax remitted by the owner, about 15% combined[2]Confirming |
| Last researched | September 25, 2026 |
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Detailed rules
The full picture, section by section
North Carolina statewide framework
| State law limits local rental registration | N.C. Gen. Stat. 160D-1207(c) bars cities and counties from requiring broad rental registration under housing inspection statutes, except for chronic violators — the basis for the Schroeder ruling. Senate Bill 291 (2025) would set statewide limits on local STR rules but had not advanced as of early 2026[3]Confirming |
|---|
Changes
Recent and pending changes
Ordinance #0509 details come from a single secondary source and must be confirmed against the city code (Chapter 18 zoning and Sec. 34-351). Given Schroeder, any new permit requirement may itself face a legal challenge; watch for litigation and for NC SB 291. Wrightsville Beach, Carolina Beach and unincorporated New Hanover County are separate jurisdictions.
Sources
Every rule above links to one of these
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.